Although this is the 2nd lease I’ve done, I’m still a rookie apparently… Marked up MF, non-Zero down, MSD doesn’t add up, etc. I thought dealers would just dodge and tell “selective truth”, never imagined they would lie to my face, which is what they did in this deal. Unfortunately I only found out after signing
---------- Lessons learned ----------
Don’t go visit in person unless you’ve got the full break-down through email/text.
Don’t negotiate with dealers on their customized forms, ask for the leasehackr-calculator-like forms or the lease-contract form.
Pay attention to the VIN, the one they gave you through email might not be the same as the one they sell you in the end.
---------- What went well ----------
I had pre-set a price line so the overall lease cost didn’t go crazy.
I didn’t purchase any of the extra protection packages from the dealer (asked for $ 1,5xx for the maintenance pkg). Financial mgr got angry in the end, so I guess I made the right choice.
---------- What went bad ----------
Marked up MF (from .00142 to .00172). Dealer gave me their customized forms which I was not familiar with, I asked for the leasehackr-form she said yes, but only came back with the written MF/RV on her customized form. I thought that was enough cuz I assume dealers won’t lie to my face, apparently I was wrong.
non-Zero down (turns out I paid $ 767). On her form there’s an item listed as “cap reduction” for $ 7xx, I asked her what that was she said those were fees, “like DMV fees and stuff”, again that was a lie, but I didn’t know at that time cuz I thought the number is roughly right. The final contract shows the total amt of fees is only $ 53, guess that’s because it’s a loaner. People who’s looking to lease a loaner should pay attention to this.
MSD doesn’t add up (should be $ 2,450, turns out I put down $ 2800). During the negotiation w/ the sales mgr we didn’t use the actual number, we go like “max MSDs”. And at the end when checking the contract, I paid most attention on the monthly payment (where I did catch a “mistake” ) and missed the MSD amt. max MSDs should only be $2,450, the extra $ 350 is useless.
Before signing the contract, the financial mgr tried to sell us the maintenance pkg. He started w/ $ 15xx, I didn’t take it, then he tried to give me the “employee price” $ 940. I didn’t take it neither, but would like to know if that could be a good deal?
I find it hard to ask for the leasehackr-calculator-like form or the lease-contract form from dealer during negotiation. They always use their customized form, I guess that helps them to make up stuff. Any tips on how to deal with that? Should I threat to walk away?
thx for sharing the info! However I’m a bit confused, I thought fees must be posted in sec#9 or sec#13 right? I’ve followed up w/ a pic of sec#13, and seems only $53 can be counted into “other fees”… Or was I wrong about “fees must be posted in sec#9 or sec#13”?
Sorry to report that the MSD’s are in fact correct. I’ll try and explain this - it looks like you did 7 MSD’s? The amount for each MSD is calculated on the payment rounded up to the nearest $50 PRE MSD. In other words, if the payment was $351 before the MSD’s, you would have paid $400 times 7 or $2800. The payment would have had to be under $350 before the MSD’s for it to be $350 times 7 or $2350. Hope that makes sense.
Take a deep breath and think: you leased a $45K BMW for low $300s with about $1,500 upfront. You will do better next time, but this deal is not a total rip off at 0.81% all in (for those who love 1% “rule”)